On January $1,2025,$ Pronghorn Company sold $12\%$ bonds having a maturity value of $$1,040,000$ for $$1,206,096\mathrm{.}74,$ which provides the bondholders with a $8\%$ yield. The bonds are dated January $1,2025,$ and mature January $1,2030,$ with interest payable December $31$ of each year. Pronghorn Company allocates interest and unamortized discount or premium on the effective$-$interest basis.

$($a$)$

$($a$)$

Your answer is partially correct.

Prepare the journal entry at the date of the bond issuance. $($Round answer to $2$ decimal places, e$.$g$.38,548\mathrm{.}25.$ If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

$\backslash$table$[[$Date Account Titles and Explanation Debit$],[$January$],[1,2025],[$Bonds Payable$],[$Premium on Bonds Payable$]]$

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